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What is an organization?A group of people working together in a
structured and coordinated fashion to achieve a set of goals.
Two or more people working together to achieve something (that often cannot be accomplished alone)
Shared vision? mission? values?
Organizational ResourcesHuman resources
Managerial talent and laborFinancial resources
Capital investments to supportongoing and long-term operations
Physical Assets Raw materials; office and
production facilities, and equipment
Information Usable data, information linkages
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Examples of Resources Used by Organizations
Table 1.1
Organization
HumanResources
FinancialResources
PhysicalResources
InformationResources
Shell Oil Drilling platform workersCorporate Executives
ProfitsStockholder investments
RefineriesOffice Buildings
Sales forecastOPEC proclamations
Iowa StateUniversity
FacultySecretarial Staff
Alumni contributionsGovernment grants
ComputersCampus facilities
Research reportsGovernment publications
New York City
Police officersMunicipal employees
Tax revenueGovernment grants
Sanitation equipmentMunicipal buildings
Economic forecastsCrime statistics
Susan’s CornerGrocery Store
Grocery clerksBookkeeper
ProfitsOwner investment
BuildingDisplay shelving
Price lists from suppliersNewspaper ads for competitors
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What is Management?A set of activities
planning and decision making, organizing, leading, and controlling
directed at an organization’s resources human, financial, physical, and information
with the aim of achieving organizational goals in an efficient and effective manner.
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Management in Organizations
Inputs from the environment• Human resources• Financial resources• Physical resources• Information resources
Planningand decision
making
Leading
Organizing
Controlling
Goals attained• Efficiently• Effectively
Figure 1.1
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Basic Purpose of ManagementEFFICIENTLY
Using resources wisely andin a cost-effective way
EFFECTIVELYEFFECTIVELYMaking the right decisions andMaking the right decisions and
successfully implementing themsuccessfully implementing them
AndAnd
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What is a Manager?Someone whose primary responsibility is to
carry out the management process.Someone who plans and makes decisions,
organizes, leads, and controls human, financial, physical, and information resources.
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The Management ProcessPlanning and Decision Making
Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them.
Organizing Determining how activities and resources are to be
grouped.Leading
The set of processes used to get members of the organization to work together to advance the interests of the organization.
Controlling Monitoring the organization’s progress towards its
goals.
The Management Process (cont’d)
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OrganizingDetermining how
best to groupactivities and
resources
ControllingMonitoring
and correctingongoing activitiesto facilitate goal
attainment
Planning andDecision Making
Setting the organiza-tion’s goals and
deciding how bestto achieve them
LeadingMotivating membersof the organizationto work in the best
interests of theorganization
Figure 1.2
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Kinds of Managers by LevelTop Managers
The relatively small group of executives who manage the overall organization. They create the organization’s goals, overall strategy, and operating policies.
Middle Managers Largest group of managers in organizations who
are primarily responsible for implementing the policies and plans of top managers. They also supervise and coordinate the activities of lower level managers.
First-Line Managers Managers who supervise and coordinate the
activities of operating employees.
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Kinds of Managers by AreaMarketing Managers
Work in areas related to getting consumers and clients to buy the organization’s products or services—new product development, promotion, and distribution.
Financial Managers Deal primarily with an organization’s financial
resources—accounting, cash management, and investments.
Operations Managers Concerned with creating and managing the
systems that create organization’s products and services—production control, inventory, quality control, plant layout, site selection.
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Kinds of Managers by Area (cont’d)Human Resource Managers
Involved in human resource planning, recruiting and selecting employees, training and development, designing compensation and benefit systems, formulating performance appraisal systems, and discharging low-performing employees.
Administrative Managers Generalists who are familiar with all functional areas
of management and who are not associated with any particular management specialty.
Other Kinds of Managers Organizations have developed specialized
managerial positions (e.g., public relations managers) directly related to the needs of the organization.
Kinds of Managers by Level and Area
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Mar
ketin
g
Admin
istra
tion
Other
Human
reso
urces
Operat
ions
Finan
ce
Middle managers
Areas of Management
Levels of Management
First-line managers
Top managers
Figure 1.3
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Ten Basic Managerial RolesCategory Role Sample Activities
Interpersonal Figurehead Attending ribbon-cutting ceremony for new plant Leader Encouraging employees to improve productivity Liaison Coordinating activities of two projects
Informational Monitor Scanning industry reports to stay abreast of developments
Disseminator Sending memos outlining new organizational initiatives
Spokesperson Making a speech to discuss growth plans
Decisional Entrepreneur Developing new ideas for innovation Disturbance
handler Resolving conflict between two subordinates
Resource allocator Reviewing and revising budget requests Negotiator Reaching agreement with a key supplier or labor
union
Table 1.2
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Managerial Roles (Mintzberg)Interpersonal Roles
Figurehead, leader, and liaison roles involve dealing with other people.
Informational Roles Monitor, disseminator, and spokesperson roles
involve the processing of information.Decisional Roles
Entrepreneur, disturbance handler, resource allocator, and negotiator are managerial roles primarily related to making decisions.
Managerial SkillsTechnical
Skills necessary to accomplish or understand the specific kind of work being done in an organization.
Interpersonal The ability to communicate with, understand,
and motivate both individuals and groups.Conceptual
The manager’s ability to think in the abstract.Diagnostic
The manager’s ability to visualize the most appropriate response to a situation.
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Managerial Skills (cont’d)Communication
The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.
Decision-Making The manager’s ability to recognize and define
problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.
Time-Management The manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.
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The Nature of Managerial WorkHow CEOs spend a typical day—
Unscheduled Meetings
10%
Scheduled Meetings
59%
Desk Work 22%
Telephone 6%
Touring Facilities 3%
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Management: Science or Art?Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways.
Requires the use of technical, diagnostic, and decision-making skills and techniques to solve problems.
Art of Management Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal insights.
Requires the use of conceptual, communication, interpersonal, and time-management skills to successfully accomplish the tasks associated with managerial activities.
Becoming a ManagerSources of Management Skills
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Sound educationalbase; continuedlife-long educationalexperiences
Successfulacquisition andutilization of basicmanagement skills
Initial job experiences;continued experiencesthrough a variety ofjob assignments
Figure 1.4
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Managing in OrganizationsFor-profit Organizations
Large businesses Industrial firms, commercial banks, insurance companies,
retailers, transportation companies, utilities, communication companies, service organizations
Small businesses and start-up businesses International management
Not-for-profit Organizations Governmental organizations—local, state, and federal Educational organizations—public and private
schools, colleges, and universities Healthcare facilities—public hospitals and HMOs Nontraditional settings—community, social, spiritual
groups
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Chapter OutlineThe Management
Process Planning and Decision
Making: Determining Courses of Action
Organizing: Coordinating Activities and Resources
Leading: Motivating and Managing People
Controlling: Monitoring and Evaluating Activities
Kinds of Managers Managing at Different
Levels of the Organization Managing in Different
Areas of the Organization
Basic Managerial Roles and Skills Managerial Roles Managerial Skills
The Nature of Managerial Work The Science and the Art of
Management Becoming a Manager
The Scope of Management Managing in Profit-Seeking
Organizations Managing in Not-for-Profit
Organizations
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Learning ObjectivesAfter studying this chapter, you should be able to:
Describe the nature of management, define management and managers, and characterize their importance.
Identify and briefly explain the four basic management functions in organizations.
Describe the kinds of managers found at different levels and in different areas of the organization.
Identify the basic managerial roles that managers may play and the skills they need to be successful.
Discuss the science and the art of management and describe how people become managers.
Summarize the scope of management in organizations.